Fed Raises Rates for First Time Since July 2023 Amid Inflation Concerns

The Federal Reserve raised interest rates for the first time since July 2023, increasing the federal funds target range by 25 basis points to 3.75%-4.00% in a unanimous vote of 12-0.

Chairman Kevin Warsh stated that inflation is too high and has been for too long, and he would be 'hard-pressed to describe broad financial conditions as restrictive.'

The market reaction was negative, with the Dow Jones Industrial Average falling over 600 points and the 10-year Treasury yield closing above 5%. The S&P 500 Index slipped 0.1%, while the Nasdaq Composite Index rose 0.7% for the week.